How to fill out Form 1096: A simple guide for your business

If your US business works with freelancers or other non-employees, you’re probably familiar with Form 1099 and tax forms reporting contractor payments. But if you’re mailing them, there’s one more document you need to include: Form 1096. It’s a short summary form that goes to the Internal Revenue Service along with your other paperwork.

In this article, we’ll walk you through what it is, who needs it, and how to fill it out – step by step.

IRS Form 1096 key information

• Form 1096 (Annual Summary and Transmittal of U.S. Information Returns) is a summary form for paper-filed 1099s and other information returns for the Internal Revenue Service.
• It shows how many forms you’re sending and the total amounts reported to the IRS.
• The IRS uses it to check if all your forms were received and match your records.
• You only need it if you’re mailing paper forms – it’s not required if you use e-filing services or the IRS FIRE system.
• You can’t just print and fill the Form 1096 template. It must be submitted on an original, scannable copy, typically by February 28.

We’ll explain each of these points in more detail below – so you know exactly when and how to file Form 1096 the right way.

What is IRS Form 1096?

This form serves as a summary transmittal form used when submitting certain tax forms and information returns to the IRS, including Forms 1099, 1098, and W-2G. These forms report non-employee income, deductions, and financial transactions that don’t fall under regular W-2 wages.

The purpose of Form 1096 is to provide a consolidated overview of all the returns you’re filing on paper. It acts as a cover sheet that summarizes:

• total number of forms included,
• total amounts paid,
• total federal income tax withheld.

This helps the IRS quickly process and cross-reference the information you’re submitting.

Why accurate filing matters

Filing Form 1096 correctly is critical for staying compliant. It ensures that:

• Totals reported in individual 1099 forms match what’s declared in the summary.
• Payments to freelancers, contractors, and vendors are properly recorded.
• You avoid penalties for errors, omissions, or mismatched data.

This form acts as a double-check mechanism, helping to prevent discrepancies that could trigger IRS audits or processing delays. Inaccurate or incomplete submissions may lead to fines, penalties, compliance issues, IRS scrutiny, and reporting setbacks. They can also complicate your year-end tax return preparation.

Form 1096 filing requirements for businesses 

This form isn’t just a formality – it’s a required IRS summary that helps match your business with the returns you’re filing. If you’re working with non-employees, and you’re mailing physical forms, Form 1096 will likely be part of your year-end reporting. Here’s when, why, and how it applies.

Do I need to file Form 1096?

This form becomes necessary when your business makes payments to non-employees like independent contractors, freelancers, and vendors. These payments usually fall under “non-employee compensation” and are often made in the form of rent, royalties, interest earnings, or other types of non-salary income.

Form 1096 must be filed by corporations, partnerships, sole proprietors, individuals, estates, and trusts.

If your business pays $600 or more to a contractor who is subject to U.S. taxes in a tax year, you’ll likely need to report that using Form 1099 – and if you’re mailing the 1099, a Form 1096 must go with it.

💡 Note: Unlike a 1099 form, you don’t need to send 1096s to your contractors. They don’t file Form 1096 because it’s the hiring business’s responsibility.

You don’t need to complete Form 1096 if you’re paying international contractors for work performed outside the U.S. Instead, collect Form W-8BEN from them to certify their foreign status.

However, U.S. contractors living abroad are still subject to U.S. tax laws – so in those cases, Form 1099 and Form 1096 still apply if filing on paper.

If you’re currently looking for a contractor from Europe to reduce costs without sacrificing quality, take a look at Useme. It gives you access to thousands of verified specialists ready for remote, on-demand work – legally and with quick cross-border payments.

 

Forms that require Form 1096

It must be submitted as a cover sheet if you’re mailing any of the following IRS forms:

• Form 1097-BTC – for issuers and recipients of tax credit bonds.
• Form 1098 – reports mortgage interest of $600 or more.
• Form 1098-E – reports student loan interest.
• Form 1098-T – reports tuition statements.
• Form 1099 series, including 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-LTC, 1099-MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, and 1099-SA.
• Form 3921 – reports stock transferred through incentive stock options.
• Form 3922 – reports stock acquired under employee stock purchase plans.
• Form 5498 – reports IRA contributions and distributions.
• Form 5498-ESA – education savings account details.
• Form 5498-SA – health savings account contributions.
• Form W-2G – reports gambling winnings and any tax withheld.

One Form 1096 per form type

Variants of certain forms (like 1099-NEC or 1099-MISC) are treated as separate types, and you must submit a separate Form 1096 for each type of return. For example, if you’re filing four 1099-NEC forms and two 1099-MISC forms to report payments to independent contractors, you’ll need two separate 1096 forms – one for each type of 1099.

Mailing the form vs. e-filing

You need to submit Form 1096 if you print out tax forms, fill them out, and send them to the IRS via mail. If you’re filing electronically, you can skip it – the IRS’s e-filing system automatically collects and processes the summary information.

E-filing and IRS thresholds

The IRS currently requires electronic filing if you’re submitting 10 or more returns of a specific type (e.g., ten or more 1099-NEC forms). If you’re filing fewer than 10, you may choose to file by mail – and in that case, Form 1096 is required.

💡 Always double-check IRS rules each year, as thresholds and filing requirements can change.

How to complete Form 1096

Get your copy

You can view and download the form from the IRS website, but you can’t just print and fill it out. The PDF Form 1096 template is useful for planning or checking what information you need to fill out, but the IRS won’t accept printed copies.

To get an official copy, request it directly from the IRS – either online at irs.gov/orderforms or by calling 1-800-829-3676. Once you place your request, forms are usually sent within 10 business days.

You can also get Form 1096 through:

• authorized tax software providers,
• professional services specializing in filing tax forms.

Information required – how to fill out Form 1096

Form 1096 isn’t complicated, but each field must be filled out correctly to avoid errors or delays. Here’s a step-by-step breakdown of what you’ll need to include.

1. Your company details and contact information

At the top of the form, enter your business name and address. If someone else handles filings on your behalf, you can also include the name and contact details of your accountant or tax preparer.

2. Your tax identification number

You must fill in only one of the following:

• Box 1 – EIN (Employer Identification Number), if you’re a business, sole proprietor, or other filing entity.
• Box 2 – SSN (Social Security Number), if you’re not operating a business and filing as an individual.

3. Total number of forms

Enter the total number of forms you’re submitting with this form. For example, if you’re submitting four 1099-NEC forms, write “4” in Box 3.

4. Federal income tax withheld

If you withheld any federal income tax from the payments reported on the forms you’re submitting, enter the total in Box 4. If no tax was withheld, enter “0.”

5. Total amounts reported

The Box 5 box summarizes the combined dollar amounts reported on the individual returns. The exact numbers come from specific boxes on the information returns you’re filing. 

Examples include:

• W-2G – Box 1
• 1098 – Boxes 1 and 6
• 1098-C – Box 4c
• 1099-B – Boxes 1d and 13
• 1099-C – Box 2
• 1099-DIV – Boxes 1a, 2a, 3, 9, 10, and 12
• 1099-INT – Boxes 1, 3, 8, 10, 11, and 13
• 1099-K – Box 1a
• 1099-MISC – Boxes 1, 2, 3, 5, 6, 8–11, and 14
• 1099-NEC – Box 1
• 1099-OID – Boxes 1, 2, 5, 6, and 8
• 1099-R – Box 1
• 1099-S – Box 2
• 3921 – Boxes 3 and 4
• …and so on depending on the form type.

6. Type of form

In Box 6, mark the type of return you’re filing (e.g., 1099-NEC, 1098, W-2G). If you’re submitting both 1099-NEC and 1099-MISC forms, you’ll need a separate 1096 for each.

Important:

• Not all boxes apply to every situation – fill out only those that match the forms you’re submitting.
• Double-check totals in Boxes 4 and 5 against your information returns to avoid mismatches.
• Make sure you’re using the official scannable version of Form 1096 if filing by mail.

Mailing IRS Form 1096

The mailing address for the form is based on the state where your business is located. Each region has its own designated IRS office for paper submissions.

To find the correct address, go to the official IRS Where to File Form 1096 page and look up your business’s state. Send your completed Form 1096 along with Copy A of each information return (such as Form 1099 or 1098) to the listed address. Keep another copy for your records.

📌 Before mailing, check for any updates – IRS addresses can change from year to year.

File 1096 due date and penalties for late filing

The deadline to file Form 1096 depends on the type of return you’re submitting. In most cases, businesses must submit this form and all related information returns to the IRS by February 28 following the end of the tax year.

However, if you’re filing Form 1099-MISC to report non-employee compensation, the deadline moves up – you’ll need to submit both Form 1099-MISC and Form 1096 by January 31.

Penalties for late filing

Missing the deadline can lead to penalties that increase the longer you wait:

• Up to 30 days late: $60 per form.
• 31 days late to August 1: $120 per form
• Filed after August 1: $310 per form.
• Intentional disregard: $630 per form.

These penalties apply to each form submitted late. They add up if you’re filing multiple returns.

Late filing may also lead to processing delays and IRS notices, so it’s important to stay ahead of the deadline and confirm you’re using the correct mailing address and official forms.

Business software for tax forms

If you don’t want to order free forms directly from the IRS, another option is to purchase IRS-approved versions of Form 1096 through tax software providers like QuickBooks or other commercial platforms. These versions are compliant with IRS scanning requirements, so you can be confident they’ll be accepted when mailed.

Many of these providers often include integrated tax tools that streamline your reporting process, especially if your business handles a high volume of filings. They typically charge a small fee per form or operate on a subscription model

Common tax form errors

Filing mistakes can lead to penalties or delays in processing, especially when your totals don’t match the information returns you’re submitting. Here are the most frequent issues to avoid:

1. Incorrect identification numbers

Make sure the filer’s and recipients’ names and tax IDs match official IRS records. Mismatched or outdated information can cause confusion or trigger IRS notices.

2. Math mistakes

Check all totals and calculations on both the individual 1099 forms and Form 1096. Inconsistent numbers between forms are one of the most common red flags.

3. Wrong form counts or dollar totals

Be sure the total number of forms listed on Form 1096 (Box 3) matches the actual number of forms submitted. Also, confirm that Box 5 correctly reflects the total of all reportable amounts from the relevant forms.

4. Missing or incorrect EIN

Failing to include your Employer Identification Number (Box 1) – or entering it incorrectly – can cause processing delays. If you don’t have an EIN, be sure to use your SSN in Box 2 instead (not both).

How to correct errors on my Form 1096

If you realize there’s an error after you’ve already submitted the form to the IRS, don’t wait – you’ll need to correct it as soon as possible.

Prepare a new Form 1096 with the corrected information. Attach a brief statement explaining what changed, and send it to the same IRS address you used for the original filing.

If the error is on the accompanying forms (e.g., 1099s), file corrected versions of the individual information returns, use the “corrected” box on those forms to mark the change and include a new Form 1096 with the corrected return.

Keep copies of all corrections for your records and notify recipients as needed.

Wrap-up: Filing IRS Form 1096

Form 1096 may be short, but it plays a key role in year-end reporting when you’re mailing information returns to the IRS. If you hire a 1099 employee or pay freelancers, submitting it correctly helps you stay compliant, avoid penalties, and keep your records in order.

Not sure if it applies to your situation? Always check the latest IRS rules.

This article is for general information only and isn’t meant to be taken as legal or tax advice. For help with your specific situation, it’s always best to talk to a qualified tax or legal professional.